Intelligencer Journal/Lancaster New Era: Program targets county's unbanked

Page 1 of 2

Intelligencer Journal/Lancaster New Era

Program targets county's unbanked

Bank On offers free financial education

BY REBECCA KRAYBILL, Staff Writer Lancaster County residents used to storing cash in tin cans or beneath mattresses are being encouraged instead to save in banks. The United Way of Lancaster County announced the launch of Bank On Lancaster on Wednesday morning at the county administration building in downtown Lancaster. Mayor Rick Gray, United Way of Lancaster County president Patrick Jinks and county commissioners Scott Martin, Dennis Stuckey and Craig Lehman were on hand for the announcement. Bank On Lancaster provides opportunities for "unbanked" people to open bank accounts and receive free financial education. An unbanked person lacks an account with a bank or credit union. According to the Federal Deposit Insurance Corp., there are more than 20,000 unbanked people in Lancaster County. The average unbanked person spends 5 percent of his or her net income on unnecessary fees, which, for a lower-to-medium-income worker, amounts to about $40,000 over an average working life, according to join bankon.org. Other downsides to being unbanked posted at the website include being the target of crime when carrying large amounts of cash and less secure long-term saving. Thirteen banks and credit unions are participating in the program, as are two nonprofit organizations that will provide free financial education. Lancaster Chamber of Commerce & Industry president Tom Baldrige, who serves as chairman of the Bank On Lancaster steering committee, said that people with low incomes will benefit from the program. "They pay thousands in fees just to get what they earned, which is not always great to begin with," Baldrige said. "A bank has protection built into it. People can save for the future, grow assets, increase their income and gain more financial knowledge," Baldrige said. Tom Clingan, director of financial stability and homelessness for United Way of Lancaster County, said he believes the program will strengthen families, which in turn will strengthen the economy. Clingan stressed the importance of developing a relationship with a bank, especially for "second-chance" account holders. Second-chance account holders are people once turned down by banks for financial irresponsibility. "We're happy to endorse it and help raise the quality of life we love here in Lancaster County," said Martin, speaking for the county commissioners. "When you think of the wasted resources (before) and how much money can now stay within the family structures, it says enough."

http://lancasteronline.com/eedition/pages/news/edition/CEAM/20120712/B/1/2399179/2/1

7/12/2012

Intelligencer Journal/Lancaster New Era: Program targets county's unbanked

Page 2 of 2

Residents interested in joining Bank On Lancaster can dial 2-1-1, a human services information line. Participating banks and credit unions include Citadel Federal Credit Union, Ephrata National Bank, Fulton Bank, Integrity Bank, Lancaster Red Rose Credit Union, LANCO Federal Credit Union, Metro Bank, Northwest Savings, PNC, Susquehanna, Union Community Bank, Wells Fargo and Wheatland Federal Credit Union. Two nonprofit groups -- Tabor Community Services and Lancaster Housing Opportunity Partnership -- are providing financial education information. For more information, visit www.bankonlancaster.org. bkraybill@lnpnews.com

2004-2012 Lancaster Newspapers

PO Box 1328, Lancaster PA 17608, (717) 291-8811 Terms of Service Privacy Policy

http://lancasteronline.com/eedition/pages/news/edition/CEAM/20120712/B/1/2399179/2/1

7/12/2012